Kevin Macnab, president and CEO of Home Hardware Stores Ltd., announced last week his intention to retire. He made the announcement at the company’s annual general meeting on May 8.

Macnab took the helm at Home Hardware in October 2018 and during his tenure there navigated the company through major changes in every aspect of the business, from fulfilment to staffing and organization. He successfully brought the company to its 60th anniversary this year—he was only the fourth CEO at Home Hardware in all that time.

Under his tenure, the company moved forward on its then-new repositioning as a retail company, shifting the strategy from operating as a wholesale company. That process drew a lot of attention to Home Hardware, as it worked to compete in an evolving retail playing field that was upset even more by the Covid pandemic.

Macnab says he has loved retail throughout his career, which has included key roles at Marks & Spencer and almost 20 years at Toys “R” Us. There, he served as both lead for the company in Canada and as president of the international division before he moved to Home Hardware Stores.

“I have long planned to retire no later than my 65th birthday and, after some reflection, I believe that now is the time to think about this next phase of life,” Macnab said. “I have had a 37-year career in retail and have felt a passion for it since day one.”

“On behalf of our dealers and team members, I want to thank Kevin for six years of dedication to Home Hardware,” said Christine Hand, chair of the Home Hardware board. “His commitment to our organization and the retail industry at large is nothing short of inspirational and we look forward to celebrating his retirement.”

No firm timeline has been set for Macnab’s departure, but he says he cares deeply about the continued success of Home, its dealers and team members, and intends to stay on during the board’s succession process to facilitate a smooth transition when his successor is named.

“I am thrilled to have worked alongside the dealers and our team members for the past six years and can see a bright future for this great company.”

McMunn & Yates, the home improvement chain based in Dauphin, Man., has 22 stores in western Canada, with 16 of them in its home province of Manitoba. The stores represent more than eight percent of that province’s home improvement sales (source: the Hardlines Market Share Report). Now, the opening of three new locations expands the retailer’s reach in the West.

“This was our acquisition of the Canadian Lumber stores, owned by Henry and Brenda Friesen, in the southern Manitoba communities of Winkler, Morden, and Altona (shown here),” says McMunn & Yates president Jason Yates. The three stores are near the south end of the province of Manitoba, not far from the U.S. border. They had comprised the business that was founded in 1987 by Henry Friesen and his father Harry Friesen. When the Friesens decided to sell their shares, McMunn & Yates acquired the stores in the summer of 2023.

The majority of McMunn & Yates stores are spread through the centre of the province, including the retailer’s home city of Dauphin, with additional locations close to the TransCanada Highway from Steinbach to Winnipeg to Brandon. The most northerly store is in Thompson, Man. There are also two stores in Saskatchewan and two in northwestern Ontario. The southern expansion takes the company into fresh territory.

“This region is a busy and active area of Manitoba and is a nice fit for our store model,” says Yates.

Even though the acquisitions took place almost a year ago, Yates explains the timing of the recent openings. “We have been working on renovations and merchandising changes the past several months. We coordinated the new store opening sale to be in conjunction with our annual anniversary sale held at our other stores.”

A new report by consumer affairs magazine Protégez-Vous ranks Quebec’s hardware chains in terms of customer satisfaction, and smaller firms occupy the top of the list. G.H. Berger, Canac, and Laferté scored high on product mix, quality, and in-stock quantities.

Hardware shoppers expressed overall approval of their in-store experience, giving an average score of eight out of 10. One soft spot in consumer sentiment is around staffing: the report points to data from Quebec industry association AQMAT that indicates two-thirds of customers want assistance or advice when making purchases.

In the Protégez-Vous survey, a quarter of respondents said finding that help can be a challenge. The trend was most pronounced in big boxes (though Home Depot, which drew modest ratings on that front, was an exception). “When you don’t need a staff member, it’s fine,” said one survey respondent.

While coming in second place overall, Canac stole the show in terms of pricing. “It succeeds in offering the best prices, especially because it orders its products in large quantities,” Protégez-Vous’ Marie-Eve Shaffer noted in a release.

Patrick Morin came close for its value offering. There, a basket of 30 items that cost $675 at Canac rang up at $771. “The prices are competitive at Patrick Morin, but not always,” said one respondent.

The two chains focus on buying local, helping them to avoid international shipping costs, and can store large quantities of product in their warehouses. Both consist entirely of corporate stores, with no independent affiliates.

“They basically cut through the middle men,” AQMAT president Richard Darveau explained to Protégez-Vous, “which allows them to be more aggressive because their purchasing costs are lower.”

Among big boxes, Home Depot came out on top in terms of pricing, with the benchmark basket totalling $773. Still, the study noted that effect was department-specific. Building materials and electric tools were more likely to be priced competitively. Home Depot’s prices for painting and finishing products, on the other hand, were elevated compared to banners like L’entrepôt RONA and Réno-Dépôt.

The magazine also assessed the state of e-commerce in the industry. Two thirds of survey participants acknowledged having shopped in-store without consulting a web site first.

While chains like RONA and Canadian Tire may make up to a tenth of their sales online, Hardlines president Michael McLarney told Protégez-Vous that “in general, independent hardware stores do less than one percent.”

Canadian Tire Corp. has seen tremendous growth in its loyalty program, Triangle Rewards, and that growth was spurred by the rise in online selling through Covid. The brilliance of the program is that it spans the range of Canadian Tire banners, including Sport Chek and Mark’s, and lets shoppers collect points from any of these stores. Now, following a year where Canadian Tire, like so many other hardlines retailers, saw sales slump (or normalize???—Editor), the company is putting even more emphasis than ever on its points program. It released its first-quarter results late last week, indicating that it still struggles to rebound from the Covid fall-off effect “in a challenging consumer demand environment,” according to its Q1 results release. Comps for the whole company were down 1.6 percent, with the Canadian Tire Retail stores down 0.6 percent.

The importance of Canadian Tire using every weapon in its arsenal becomes even more acute. And its loyalty program is a big part of that arsenal. The retailer is holding what it calls “our biggest rewards event of the season” with a series of promotions that will give shoppers the chance to earn multiple rewards, called stacking, with the “Triangle Max Stack Event.” From May 9 to May 16, Triangle Rewards members have access to savings in-store and online.

According to a release, “This one-of-a-kind event allows Canadians to purchase amazing items at reduced prices, stack exclusive offers on select products and earn 15-times to 50-times bonus CT money that they can then use towards the purchase of other items across their favourite Canadian Tire banner store.”

One promotion, held this past weekend, let users earn storewide bonus offers: members who spend $150 or more will earn $30 in additional CT Money and those purchases over $250 will earn $50 in bonus CT Money. In addition, an assortment of stackable offers will be available throughout this week, including the ability to earn extra points on specific products.

PEOPLE ON THE MOVE

Alex Yakovyshenko, CEO and general manager of Haney Builders’ Supplies in Maple Ridge, B.C., has been named chairman of the board of the Building Supply Industry Association of British Columbia. He takes over from Gary Sangha of Crown Building Supplies in Surrey, B.C.

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RETAILER NEWS

Canadian Tire Corp.’s first-quarter results show the company is still recovering from the drop-off in sales post-Covid, but its hardware business managed better than other divisions. Revenue was $3.52 billion, down 4.9 percent from $3.71 billion in the same period last year. Comparable sales for the whole company were down 1.6 percent, while comps at Canadian Tire Retail stores were down only 0.6 percent. Essential categories at CTR were up two percent, led by automotive. Discretionary categories were down overall, but seasonal and gardening categories grew. Despite the continued sluggish results, the company enjoyed “product margin appreciation for the quarter, while also reducing inventory levels,” said Greg Hicks, president and CEO of Canadian Tire Corp.

Quebec dealer Matériaux Pont-Masson is making buzz with its latest marketing campaign, a tribute to the 1977 film Slap Shot. The BMR-affiliated store network has partnered with Gravité Marketing since 2019 and the idea for the spot came out of a brainstorming session between the agency and the retailer. Although an American production, Slap Shot became a cult classic in Quebec due to its casting of local talent and extensive vernacular French dialogue.

Amazon’s first-quarter net sales increased 13 percent to $143.3 billion, compared with $127.4 billion in the first quarter of 2023. Amazon is global, but North American sales kept up, posting an annual increase in the quarter of 12 percent. The company’s operating income increased to $15.3 billion in the first quarter, more than three times the profits of $4.8 billion in the first quarter of 2023.

Canadian Tire and Canac have aligned with the nonprofit Les Produits du Québec to display that organization’s three certification labels on applicable products in the retailers’ stores. They join such retailers as BMR and Walmart who are already partnered with the organization. “They have wind in their sales and we want to be part of their growth,” Patrick Delisle, Canac’s marketing director, told Le Journal de Montréal.

AD reports that member sales in the first three months of 2024 hit a record $19.5 billion, up seven percent across AD’s 14 divisions in three countries. Same-store sales increased by two percent in Canada, three percent in the U.S., and five percent in Mexico. Member purchases grew by two percent to $4.7 billion. In Canada, AD’s retail home improvement business is represented by its Building Supplies Division, which consists mainly of members of the former TORBSA buying group.

For the first quarter of 2024, Grainger had sales of $4.2 billion, up 3.5 percent, or 4.9 percent on a daily, organic constant currency basis. Sales in the quarter increased 3.5 percent. Operating earnings were $669 million, down 1.6 percent.

Ace Hardware in the U.S. has debuted its own private-label line of barbecue sauces and rubs. The mid-priced assortment is called Loud Mouth, and it became available on April 25.

U.S. farm and hardware retailer Tractor Supply Co. reported that net sales for the first quarter of 2024 increased 2.9 percent to a record $3.39 billion, from $3.30 billion in the first quarter of 2023. The increase was driven by new store openings and growth in comparable store sales, which were up 1.1 percent. Gross profit increased 4.4 percent to $1.22 billion.

Terry Deane of Southridge Building Supplies in Surrey, B.C., and a former owner of Hollyburn Lumber, has died. Born in Montreal in 1946, Deane was considered a pioneer in the building supply industry in the Lower Mainland. He started his career at Seaford Sales in North Vancouver in 1965. In 1975, he moved to Hollyburn Lumber, and became a partner in the business two years later. In 2002, he and his four sons established Southridge Building Supplies. Deane leaves behind his wife, Wilma, four sons and a daughter, as well as eight grandchildren and five great grandchildren.

Taiga Building Products reported Q1 net sales of $393.6 million, down four percent from $408.5 million a year earlier. The decline was attributed to lower sales volumes of commodity products. Net earnings fell to $12.8 million from $13.5 million in the comparable period of 2023.

Canfor Corp. will acquire the El Dorado lumber plant from an Arkansas affiliate of Domtar Corp.  for $73 million. According to Canfor, it will raise the mill’s capacity to 175 million board feet per year through planned upgrades. Meanwhile, the Vancouver-based company narrowed its Q1 loss to $64.5 million, from $142.0 million in the comparable period of last year. Sales for the quarter edged down to $1.38 billion from $1.39 billion.

Western Forest Products Inc. reported a net loss of $8.0 million in the first quarter of 2024, compared to a $17.7 million loss a year earlier. Revenues of $239.5 million were down from $263.8 million. At the same time, the company announced the indefinite curtailment of its Alberni Pacific Division facility.